In a shocking case in the cryptocurrency investment community in the U.S., Eugene William Austin Jr., a Long Island resident, has officially been sentenced to 18 years in prison for masterminding a $12 million crypto scam, involving his son.
The perfect scam disguised as 'crypto trading representative'
Eugene William Austin Jr., 62, who also referred to himself as 'Hugh Austin', posed as a high-volume cryptocurrency trader and premium financial investor to approach victims. He and his son Brandon Austin created the image of an experienced team capable of:
Brokerage of high-volume crypto trades (with one deal reaching up to $5 million),
Offering short-term crypto investment opportunities with high returns,
And helping connect startups and small businesses with capital from financial 'sharks'.
All were intentional lies.
Victims: From close friends to profit-hungry investors
According to the U.S. Department of Justice, this scam affected more than 24 people, many of whom were friends or personal acquaintances of the Austin father and son.
With investment 'promises', they made victims believe to transfer amounts ranging from hundreds of thousands to millions of dollars in hopes of quick profits. However, in reality, that money was not used for crypto investments or financial connections but was spent on a lavish lifestyle.
Living lavishly off other people's money
The scam money was lavishly spent by the Austin father and son on luxury activities, including:
Staying at luxury hotels, dining at upscale restaurants,
Shopping extravagantly, sending money to relatives,
Purchasing a 2022 Jaguar E-Pace P250 – which has since been seized,
And even, they paid a small sum to a few victims to maintain trust and prolong the scam.
All of this behavior took place over a long period until the matter was brought to light.
Severe punishment for the 'leading father'
After the trial in September 2024, Eugene Austin was sentenced:
18 years in prison,
3 years of supervised release after serving the prison sentence,
Fined over $6 million,
Total compensation of over $12.6 million to victims.
Meanwhile, his son – Brandon Austin – was sentenced to 4 years in prison as an accomplice.
Not the largest scam in Long Island – but still quite frightening
Despite causing significant damage, Eugene Austin's case is not the largest crypto scam ever to occur in Long Island.
Earlier in 2022, Eddy Alexandre – also a Long Island resident – was sentenced to 9 years in prison for masterminding a $248 million Ponzi scheme, defrauding over 25,000 investors, mostly from the Haitian community, through the fraudulent project 'EminiFX' which promised a steady 5% return every week.
Lessons learned for the crypto community and Binance users
From incidents like those of Austin and Alexandre, vital lessons can be learned for the crypto investor community, especially for users on platforms like Binance:
Do not trust promises of high returns in a short timeframe, especially if there is no transparent audit or clear licensing.
Be cautious of those who claim to be 'brokers', 'agents', or 'financial connectors', even if they appear professional or are familiar.
Always prioritize trading and investing on large, highly secure platforms recognized by the community, such as Binance – which has a strict verification system and clear validation processes.
If someone invites you to invest outside of mainstream platforms, ask questions: 'How do they profit?', 'Who checks legitimacy?', and 'Can I withdraw my money at any time?'
Conclusion: Trust has been stolen and the consequences for an entire community
The Eugene Austin case not only caused dozens of victims to lose millions of dollars but also continues to erode public trust in the decentralized finance and cryptocurrency sectors.
The most dangerous aspect lies not just in the amount of money, but in exploiting personal relationships, acquaintances, and the dream of quick wealth to create a vortex of fraud.
As crypto becomes more popular and integrated into life, mainstream platforms like Binance need to continue enhancing user education while raising awareness of risks from outside the ecosystem.
Risk warning: Investing in cryptocurrencies always carries high risks and is not suitable for everyone. Be cautious of non-mainstream investment invitations, avoiding trusting individuals or organizations that are unverified. The crypto market is growing, but it comes with numerous traps that need to be viewed with clarity.